EVALUATING EXPORT TAX POLICY ON CRUDE PALM OIL AND ITS IMPACT TO THE GROWTH OF HIGH VALUE ADDED PALM BASED PRODUCT
EVALUATING EXPORT TAX POLICY ON CRUDE PALM OIL AND ITS IMPACT TO THE GROWTH OF HIGH VALUE ADDED PALM BASED PRODUCT
A. BRIEF PROBLEM STATEMENT
EVALUATING EXPORT TAX POLICY ON CRUDE PALM OIL AND ITS IMPACT TO THE GROWTH OF HIGH VALUE ADDED PALM BASED PRODUCT
INTRODUCTION
Palm oil industry is one of the main pillars of Malaysian economy. It started in 1800s, with the introduction oil palm to the state of Malaya as ornamental plant, and now it has grown into a diversified industry which covers food1 as well as non-food applications2. The first commercial oil palm plantation was set up at Tennamaran Estate, Selangor in 1917.
Being a country that is blessed with optimum climate and availability of land, oil palm plantation area has increased tremendously over the years. In 1959, oil palm plantation land area was recorded at 51,053 hectares before increasing to more than 10–fold to 545,462 hectares in 1980 (DOS, 2010). In 2009, land used for oil palm cultivation is recorded at 4.7 million hectares and now, the country have limited land area to support expansion of oil palm plantation (PEMANDU, 2010).
Besides expansion in oil palm cultivated land, the industry also expanded in both upstream and downstream activities. The 1970 to 1980s was the era that saw the growth of refining and fractionation facilities, as well as the Malaysianisation of three plantation companies, namely Guthrie, Sime Darby and Golden Hope (NEAC, 2010). These companies, along with many other players of the industry now formed the extensive palm oil industry network consisting 413 mills, 43 crushers, 51 refineries, 18 oleochemical plants and 25 biodiesel plants (PEMANDU, 2010).
The 1st Malaysian Plan that was launched in 1965 listed palm oil sector as one of the key drivers for the Malaysia’s economic growth. It was then supported by the establishment of various organizations such as Federal Land Development Authority (FELDA) and Malaysian Palm Oil Board (MPOB), and also other
A. BRIEF PROBLEM STATEMENT
EVALUATING EXPORT TAX POLICY ON CRUDE PALM OIL AND ITS IMPACT TO THE GROWTH OF HIGH VALUE ADDED PALM BASED PRODUCT
INTRODUCTION
Palm oil industry is one of the main pillars of Malaysian economy. It started in 1800s, with the introduction oil palm to the state of Malaya as ornamental plant, and now it has grown into a diversified industry which covers food1 as well as non-food applications2. The first commercial oil palm plantation was set up at Tennamaran Estate, Selangor in 1917.
Being a country that is blessed with optimum climate and availability of land, oil palm plantation area has increased tremendously over the years. In 1959, oil palm plantation land area was recorded at 51,053 hectares before increasing to more than 10–fold to 545,462 hectares in 1980 (DOS, 2010). In 2009, land used for oil palm cultivation is recorded at 4.7 million hectares and now, the country have limited land area to support expansion of oil palm plantation (PEMANDU, 2010).
Besides expansion in oil palm cultivated land, the industry also expanded in both upstream and downstream activities. The 1970 to 1980s was the era that saw the growth of refining and fractionation facilities, as well as the Malaysianisation of three plantation companies, namely Guthrie, Sime Darby and Golden Hope (NEAC, 2010). These companies, along with many other players of the industry now formed the extensive palm oil industry network consisting 413 mills, 43 crushers, 51 refineries, 18 oleochemical plants and 25 biodiesel plants (PEMANDU, 2010).
The 1st Malaysian Plan that was launched in 1965 listed palm oil sector as one of the key drivers for the Malaysia’s economic growth. It was then supported by the establishment of various organizations such as Federal Land Development Authority (FELDA) and Malaysian Palm Oil Board (MPOB), and also other
References: DOS (2010), Yearbook of Statistic, Department of Statistic Malaysia. Gopal, J. (2001), ‘The Development of Malaysia’s Palm Oil Refining Industry: Obstacles, Policy and Performance,’ in Vandana Chandra, (2006) ‘Technology. http://bepi.mpob.gov.my, “Statistical Data by Economics and Industry Development Division, Malaysian Palm Oil Board (MPOB)” accessed on 26 April 2012. Idris, R (2011), ‘Malaysia’s Innovation and Comparative Advantage in Producing/Exporting Palm Oil and the Development of Best Sustainability Practices Applied by Palm Oil Producer’. Paper Proceeding in International Conference on Innovation and Sustainability Transitions in Asia, University of Malaya, Kuala Lumpur. NEAC (2010), “National Economic Model: Palm Oil Industry, (Details) National Economic Advisory Policy”. PEMANDU (2010), National Key Economic Area. Reuter (2012), CPO buyers switch to KL after Jakarta tax change http://www.btimes.com.my/Current_News/BTIMES/articles/pesell/Article/, accessed on 26 April 2012. Tee Ching, O. (2011), KL-Jakarta talks to include CPO tax waiver, New Straits Times.